Web3 technologies have been revolutionizing the world of online gaming. Blockchain technology has the potential to transform the way we play and interact online. As a Web3 game, we’re big believers in the potential of this tech to create a better world, both in the gaming industry and beyond. In this article, we’d like to explore what Web3 gaming actually is, and to speculate on what these exciting new developments could mean for gaming in the long run. We hope you enjoy!
What is Web3 Gaming?
Web3 gaming is a broad term to encompass a new format which leverages blockchain technology and its affiliated culture to create a new kind of gaming experience. One that is marked by the following four features:
- True ownership
- Real economies
- Transparency
- Interoperability
These features are cornerstones of the new era of gaming. Unifying themes across all four are freedom and the return of value and power to players. Web3 gaming is all about collective ownership, community, and building together. And, with an emphasis on exemplary player experience, these quintessential features offer many benefits. Read on for a deep dive into these features and what they might mean for the future of gaming.
True Ownership
What is this feature?
“True Ownership” in Web3 gaming is a novel feature powered by blockchain technology. It provides gamers with authentic ownership of their in-game assets, represented as Non-Fungible Tokens (NFTs). These can include in-game assets such as skins, avatars, weapons and other items. And, of course, trading cards. Each is uniquely linked to a player’s blockchain address, which functions much like a digital wallet.
Unlike conventional games where in-game assets are firmly controlled by the developers, in Web3 gaming, players possess complete control over their assets. They can buy, trade, sell, or even transfer these assets independently. This feature is especially pertinent in the world of Web3 TCGs, where players can feasibly trade their digital cards. For this reason, Web3 TGCs like Gods Unchained and Cross the Ages have been incredibly successful.
What could this mean for the future?
The introduction of true ownership in gaming is truly revolutionary. It gives players a whole new relationship with their favourite games and IPs, whereby they can own a tangible piece of that property without even having to rely on the continued existence of the brand or company in question.
We are creating digital assets which are simultaneously a functional tool within gameplay while having a unique identity and tangibility comparable to a physical product, respective to how the value is tied to a given user.
What this means is that fans of a game have a stake in that property, just for playing. No need to buy stocks! And, that stake just so happens to be their favourite item/character/card within gameplay, which is an extremely cool development!
This is not to mention the possibility of interoperability between games, enabling assets to be used across different gaming platforms. We could see a breakdown between the barriers of IPs and fictional universes in a way that is unprecedented. The emergent new multiverse would be totally interactive. Additionally, with VR technology advancing by the day, we could have a Ready Player One situation on our hands in the not-so-distant future!
Real Economies
What is this feature?
The “tokonomies” of web3 games are economies which exist within the gaming universe of each property and are underpinned by a game’s native currency. Many gaming Web3 companies have their own token, for instance, Phantom Galaxies has ASTRAFER, GameFi has GAFI, Splinterlands has Splintershards (SPS), and Aradena will soon have Aradenean Gold ($AG).
These web3 gaming economies are not just a gameplay feature; they operate like a real economy, with supply and demand dynamics, inflation and deflation, and market speculation.
Players can earn, trade, and spend this currency in-game similar to how real-world economies function. However, tokens can also be exchanged for other cryptocurrencies and major world currencies, providing a gateway between the in-game and world economy.
These native currencies often have utilities beyond their transactional function, for instance, they may unlock the full feature range of their respective game.
What could this mean for the future?
The emergence of real economies within games presents transformative possibilities for the gaming industry and beyond. As these in-game economies evolve, they could potentially mirror real-world economies to an even greater degree.
Games with real economies could become platforms for entrepreneurship and innovation. For instance, players could start businesses within these games, providing goods or services to other players in exchange for that game’s token.
For game developers, managing these economies could present new challenges, as they must consider economic factors like inflation, scarcity, and economic balance while designing their games.
At the societal level, these real economies could lead to new forms of work and commerce, with people making a living entirely within virtual worlds. However, they also raise important considerations around regulation, financial stability, and income disparity. The impact of these real economies in Web3 games could extend far beyond the gaming industry, potentially reshaping our understanding of work, commerce, and digital interaction.
Transparency
What is this feature?
Transparency in Web3 gaming is an inherent feature due to the use of blockchain technology, which allows all transactions and actions to be recorded and verified publicly. This means that players can verify for themselves the status and ownership of in-game assets and trades are visible, preventing unfair modifications.
For instance, games like Phantom Galaxy and Gods Unchained keep their entire history of transactions and ownership of digital assets on the blockchain. This means a player can track the origin and history of their assets, which helps in establishing trust in the system.
What could this mean for the future?
As transparency becomes a feature of Web3 gaming, it can deeply impact the gaming industry and have ripple effects on digital interactions at large. For players, it can enhance trust and fairness, reducing disputes and enabling them to make informed decisions based on verifiable information.
For game developers, it may necessitate more openness and accountability. In a broader societal context, this level of transparency in digital interactions could influence users’ expectations from digital platforms. It might prompt demands for increased transparency in other digital and real-world systems. However, it also highlights questions around privacy, data management. As this feature evolves, it’s set to reshape the landscape of trust and accountability in digital spaces.
Interoperability
What is this feature?
Interoperability in Web3 gaming refers to the ability for in-game assets to be used across different games or platforms. As has previously been discussed, this is largely facilitated by the true ownership which blockchain technology provides, which enables assets to be independently owned by the players and not tied to a specific game.
What could this mean for the future?
The potential implications of interoperability in Web3 gaming are vast and transformative. It could redefine the way games are played and interacted with, enabling a more fluid, interconnected gaming universe, or a “metaverse,” where assets and even player identities could move freely between games.
For players, this could increase the value and utility of their in-game assets. It also adds an extra dimension to gameplay, with the potential for cross-game strategies and interactions.
For game developers, it presents both an opportunity and a challenge. They can build games that tap into an existing ecosystem of assets and players, but they also have to consider how to integrate external assets into their games without disrupting game balance.
At a societal level, interoperability could influence how we interact with digital spaces, shifting towards a more integrated, cross-platform digital experience. However, it also raises questions around compatibility, standardization, and the potential for increased concentration of power among the platforms that become hubs for these interoperable assets.
It is certainly a brave new world into which we venture. However, the transformative benefits that Web3 has, in our opinion, far outweigh any cons. With increased equality, influence, freedom and value for gamers, we think the new technology is heralding a very bright future. Provided we as community members and developers act responsibly and ethically. We are excited to see where these innovations will take gaming and society at large. Let us know your thoughts in the comments below or in #general in our Discord server!
